Want to finance a tiny home in Canada? Here’s how!
Many Canadian millennials, college grads, home owners, boomers and anyone feeling the squeeze are questioning whether or not they will actually be able to purchase a new home. Tiny House Canada understands the thought many people have that owning a home is more of a dream than a reality. A recent article from Market Watch discusses this very topic, featuring tiny home owner Ryan Mitchell. His tiny house story is a great example of how US grad students are findings ways to purchase a tiny homes, a new way of living that is not only affordable but also sustainable for the environment.
“For just $30,000 (USD), Mitchell’s microscopic home on wheel provides him with just enough space to enjoy a simple lifestyle – and save big on monthly living costs.” – Deborah Kearns, Market Watch
With the help of Mitchell’s parents, he received a loan of $13,220.00. Mitchell worked, saved and ended up building his own tiny home in just 18 months. With the financial freedom that owning a tiny home provides, he has paid his parents back in full and saved money by reducing the normal bills that come with owning a home.
To educate others about the tiny home lifestyle, Mitchell started TheTinyLife.com blog. In his blog, he writes about the tiny house movement, the perks of owning a tiny home, and why owning a tiny home makes sense financially.
Financing: RV loan vs personal loan
A tiny home is typically smaller than 500 square feet and can cost as little as $10, 000 (roughly). Buyers will mostly still need a loan. Unfortunately, most mortgage lenders won’t offer a loan for tiny homes. Why? Most mortgage lenders typically have a minimum amount that they can loan, and some only give loans to permanent homes which leaves the buyer wondering, “How will I pay for all this?”
There are still ways of getting a loan, but not in the traditional way. You could possibly borrow a line of credit from your financial institution. Or do as Mitchell did and borrow money from a family member. Just be sure to know how much house you can afford so you can pay back the loan in full.
One route potentially tiny homeowners can take is to buy an RV loan. If you plan on building a tiny home that is mobile, you can get a loan ranging up to $66,096.00 keeping your interest rate low. However, if your home isn’t considered an RV, or if you plan on building it on a foundation, your interest rate will be higher.
Where can I put my tiny home?
One thing that you should figure out before you purchase a tiny home, is where you will put it. You’ll be surprised to know all the various options homeowners can choose from. You can buy a parcel of land, rent a long term RV spot, move around on public land, or even park it on a family’s property. Keep in mind that buying a parcel of land will increase the cost, so it is good to know all available options. If you plan on buying a tiny home that has already been built, be sure to check out Tiny House Canada’s listing page. Tiny House Canada will help you find the perfect place to park your tiny home!
Can’t sit still in one spot for too long? You can take your tiny home and explore the country! First, you will need to learn about the rules and regulations for towing your tiny home. Each province has different requirements so you will want to check out the Digest of Motor Laws link on our resource page. You will also find information on towing and the types of hitches required to tow your tiny home.
Owning a tiny house is different from the norm
Lots of new home buyers consider going the typical route of buying a home out in the suburbs. That was not the case for Korie and Alex Veidel. When the housing market crashed, they saw friends and family who lost their homes and ended up in a lot of debt.
After some thought, the couple decided to buy a pre-built tiny home from a local builder. With about $33,000k, they were able to buy a 144-square-foot home. They now have a 9-month-old baby and park their tiny home in Alex’s parent’s backyard.
“Living here has its challenges, like having no privacy and hearing everything around you, but we also have more family time and are able to travel more,” Korie Veidel says. – Deborah Kearns, Market Watch
And if you are interested in buying your own– there home listings available online here: https://tinyhouselistingscanada.com/featured-listings/
Want to tell more people about the tiny house movement? Feel free to share it on your Facebook so that others can appreciate the beauty that Canada’s builders are creating!